Opposition asks businesses to blame carbon tax for price increases

Tony Abbott's Liberal party is behind a controversial new campaign that is recruiting local businesses to help fight the carbon tax.

The opposition has produced and distributed flyers, prompting retailers to use them as a means to blame the tax for any potential price increases.

"We always strive to keep our prices at reasonable levels but because the carbon tax will make electricity and gas more expensive, our prices will increase," read the leaflets, which were first revealed by News Limited yesterday (June 25).

While the carbon tax is set to increase gas and electricity prices across the country upon its introduction on July 1, it is not an excuse for businesses to raise prices unjustly.

Earlier this month, the Australian Consumer and Competition Commission (ACCC) warned customers that they should be wary of those who might look to exploit the tax for profit.

"While businesses are free to set their own prices, if they make claims about the impact of the carbon price these need to be truthful and have a reasonable basis," said ACCC chairman Rod Sims on June 18.

Tony Abbott has repeatedly claimed that he will repeal the carbon tax if voted into power during the next general election, which must be held by November 30 2013.